Global Food Grade Industrial Gas Market Size By Type (Carbon Dioxide, Nitrogen), By Application (Freezing & Chilling, Packaging), By Region, And Segment Forecasts, 2023 to 2032

The Global Food Grade Industrial Gas Market was valued at USD 9.8 billion in 2023 and is projected to surpass USD 15.4 billion by 2031, growing at a CAGR of 5.9% during the forecast period of 2023–2031. The market is driven by increasing demand for processed and packaged foods, rising awareness of food safety, and the adoption of advanced preservation technologies to extend the shelf life of food products. Industrial gases such as nitrogen, carbon dioxide, and oxygen are extensively used in food processing, packaging, and storage to maintain quality, freshness, and safety.

Drivers

Growing Demand for Processed Foods: Rapid urbanization, changing lifestyles, and rising disposable incomes have increased the consumption of processed and ready-to-eat foods, driving the need for industrial gases.

Focus on Food Safety and Quality: Stringent regulations around food safety have pushed manufacturers to adopt food-grade gases for packaging and preservation.

Technological Advancements in Packaging: Innovative technologies like Modified Atmosphere Packaging (MAP) are gaining traction, further boosting the demand for food-grade industrial gases.

Restraints

High Costs of Gas Handling Equipment: The cost of specialized equipment for handling food-grade gases can hinder adoption, particularly in small and medium enterprises.

Stringent Regulatory Requirements: Compliance with stringent food safety and quality standards poses challenges for manufacturers, impacting production costs and scalability.

Opportunity

Expansion in Emerging Markets: Rising demand for packaged foods in Asia-Pacific and Latin America offers significant growth opportunities for market players.

Adoption of Sustainable Solutions: Development of eco-friendly and renewable industrial gas solutions presents opportunities to align with global sustainability goals.

Market by System Type Insights

Nitrogen Segment: Nitrogen held the largest market share in 2023 due to its extensive use in MAP and freezing applications. Its inert properties make it a preferred choice for food preservation.

Carbon Dioxide Segment: This segment is anticipated to witness significant growth, driven by its application in carbonated beverages and freezing.

Market by End-use Insights

Food Processing Segment: The food processing industry accounted for the highest revenue in 2023, primarily due to the extensive use of industrial gases in meat, dairy, and bakery products.

Beverages Segment: This segment is projected to grow steadily due to the rising demand for carbonated and non-carbonated beverages.

Market by Regional Insights

North America: Dominated the market in 2023, supported by a well-established food and beverage industry and advancements in food preservation technologies.

Asia-Pacific: Expected to register the highest growth rate during the forecast period, fueled by increasing population, urbanization, and rising consumption of packaged foods in countries like China and India.

Competitive Scenario

Key players in the Global Food Grade Industrial Gas Market include Air Products and Chemicals, Inc., Linde PLC, Air Liquide, Praxair Inc., and Messer Group. These companies focus on product innovation, strategic partnerships, and expanding their geographical presence.

Scope of Work – Global Food Grade Industrial Gas Market

Key Market Developments

2023: Linde PLC launched an eco-friendly nitrogen production system to enhance sustainability in food preservation.

2024: Air Liquide partnered with a leading food manufacturer in Europe to develop customized gas solutions for meat preservation.

2025: Messer Group expanded its production facility in Asia-Pacific to meet the rising demand for food-grade gases.

FAQs

What is the current market size of the Global Food Grade Industrial Gas Market?

The market size was valued at USD 9.8 billion in 2023.

What is the major growth driver of the Global Food Grade Industrial Gas Market?

Rising demand for processed and packaged foods is a key growth driver.

Which is the largest region during the forecast period in the Global Food Grade Industrial Gas Market?

North America dominated the market in 2023, but Asia-Pacific is expected to witness the highest growth rate.

Which segment accounted for the largest market share in the Global Food Grade Industrial Gas Market?

The nitrogen segment accounted for the largest share, owing to its extensive use in Modified Atmosphere Packaging.

Who are the key market players in the Global Food Grade Industrial Gas Market?

Key players include Air Products and Chemicals, Inc., Linde PLC, Air Liquide, Praxair Inc., and Messer Group.

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